• Make savings fun – have a competition with your family or friends to see who can keep their savings the longest.
• Save on banking and insurance – review banking costs and insurance costs each year.
• Stop buying convenience food – food that has been prepared or even semi-prepared costs more. You are paying for convenience. Try to cook at home and use fresh ingredients.
• Buy only what you need – try to plan and only buy food for your needs. This will prevent wastage.
• Buy in bulk – take advantage of bulk offers to save on goods that have a long shelf-life.
• Take leftovers for lunch – when cooking meals, ensure that you take the leftovers for lunch the next day. This will prevent you from spend unnecessarily.
• Make a shopping list – before you go shopping and don’t go when you are hungry because then you tend to buy more.
• Give alternative gifts – remember, it is the thought that counts so something handmade could be more appreciated.
• Compare prices – shop around for the best prices. The internet has made it easier to compare prices.
• Familiarize yourself with seasonal sales – don’t buy things simply because they are on sale, but sales do provide relief when you buy items you need at reduced prices.
• Delay gratification – give yourself time to think about a purchase before you buy something. Research the item, check the price and reviews of what other people have to say and really consider all the options before buying.
• Electricity – switch off the lights or appliances that are not in use. Replace light bulbs and appliances with energy efficient ones.
• Cell phone and television packages – regularly review your cell phone and television packages to ensure that they still meet your needs and update it if necessary.

Themba asks Sophie if she understands everything they have discussed regarding savings. Sophie says she is ready to start saving but isn’t sure where to start. Themba says she needs to follow these five points:

IDENTIFY WHAT YOU ARE SAVING FOR
No one starts a long road trip without a map of where they are going and which route they are going to take.
This is the same for saving. You need to have a clear goal of what you are saving for (we covered this in the Secret of the Leopard). You need to write down each goal/objective, how much you will need to achieve it, how much you need to save weekly and monthly and the date for when you want to reach your goal. You must make these realistic so that you can achieve it. You will need to be disciplined and motivated to reach your goals.

DETERMINE HOW MUCH YOU CAN SAVE

We covered budgeting in the Secret of the Elephant. You need to know what you earn; how much you spend and what you have left so that you can determine how much you can save. You might need to reduce your spending in order to save more.

CHOOSE THE APPROPRIATE SOLUTIONS
There are many ways to save. You need to research and find the right solution for you. A financial adviser can help you to manage your finances and offer solutions to help you save.

MAKE IT AUTOMATIC
As we mentioned, having your savings automatically deducted from your account makes it easier to save. So be like the lion and feed yourself first.

MONITOR YOUR PROGRESS
Take time every month to review your savings and see if you are on track to meet your goals. If you aren’t you will need to review your plan and adapt it. If you are meeting or exceeding them then it will motivate you to continue.
Themba reminds Sophie that she should be saving 10% of her salary for emergencies or for her goals. Then she should also be saving for the future and education, over and above this 10%. Sophie shakes her head and says that’s a lot to save on a small income. She still needs to put food on the table for her children and pay her rent. Themba understands this and says that’s why she should start small and then grow her savings as she gets an increase or extra money. But he says she needs to have a plan so that she knows what she needs to do and to stop spending money on things she doesn’t need.

Calculations

To calculate a percentage of an amount, simply take the portioned amount and divide it by the full amount and times by 100. For example if you want to work out what percentage of her salary Sophie pays in rent:
Rent paid/Total net amount X 100 = percentage ZWL 1 000.00/ ZWL 3 500.00 X 100 = 28.6%